By Jennifer Sanchez
In this economy, a lot of medical and day spa owners are tempted to use discounts to drive sales. But honestly, it’s not discounts that drive your sales the most—it’s how well you motivate your staff to sell. Basic sales training is essential, but so are specific goals and rewards. Job complacency is a killer. To keep your staff awake, alert, and learning new sales techniques, I recommend creating employee incentive programs that change on a regular basis.
When coming up with incentives I always suggest you do something very scientific…ASK YOUR EMPLOYEES what they’d like. As managers, nine times out of ten we complicate things. Get back to basics and implement rewards that your employees actually want and can achieve.
Here is an example one you that you can use as a base, then modify to fit your medical or day spa’s needs:
If you want to generate higher sales for a specific service like Botox, don’t lower the sales price. Instead you can use the percentage you would have discounted and create an employee rewards program with it.
Here’s an example of a typical discount-style program. I call these “Botox Days.”
• You really need to move product quickly.
• Your medical spa usually charges $15/unit for Botox.
• On the Botox Day, you lower the price to $12/unit.
• Additionally, you spend money on mailers and newspaper advertisements.
Let’s look at the numbers, based on a target recommendation of 30 units of Botox per client.
Your non-discounted Botox sells for $15/unit
If you discount it for Botox Day, it sells for: $12/unit
The discount costs you $90 per client, plus advertising costs.
Don’t get me wrong, I love Botox days! When used correctly they can bring in thousands of dollars a day. But doesn’t it make more even more sense to give your employee $10, $15, even $25 for every client they convert to Botox that week?
Employee Reward Example:
For every client that purchases 30 or more units of Botox this month, based on your recommendation, you will receive a $25 bonus!
Think about it, you don’t have to spend money on advertising, you don’t have to build a secondary relationship with the client (your esthetician or service provider has already done that) and by giving an incentive to your staff member, she/he will be personally motivated to help your clients realize that Botox is a fast way to look younger and better. Not only are you saving money (compared to discounting) but when implemented well, you’re teaching your employees to sell.
In this example, we used a cash bonus (sometimes called a “spiff”) to reward employees who sell a minimum of 30 units Botox to an individual client. But remember, you might also ask your employees how they want to be rewarded. When asked, many employees say they like rewards such as gift cards to favorite clothing stores, gas cards, paid training, free product, and so forth. Change your rewards programs frequently to keep them interesting and have fun with it.
I hope this helps inspire you to take this concept and create a host of incentive and rewards programs. Also please email me if you have any questions, comments, or suggestions for new topics!
Jennifer Sanchez is a Strategic Coach for Medical Spas & Clinics with Inspiration, Inc. She can be reached at (800) 507-1620 X3 or click here to book a complimentary consultation.
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